When is a good time to start your own business?
Posted: Wed 29th Sep 2021
Starting your own business is a big decision to make, with so many considerations to account for. One of the most common questions people ask is “when is the right time?”.
Although there’s no definitive answer to that, there are certainly things that can indicate when it’s a good time to start a business.
For every concern you may have that the business could fail, many of these factors will also be reasons why your business could succeed. In this blog, I’ll take you through my top indicators that prove you’re ready to get started.
You’re passionate about your idea
It’s normal to have plenty of ideas. But if you’re not excited about them, it’s unlikely that you’ll be driven to make the idea a success or even a reality.
When you have an idea that you’re truly passionate about, you’ll be more likely to be dedicated, determined and motivated to exhaust every avenue to reach your goal.
You have a business plan
A business plan is much more than just an idea. Without a solid business plan in place, it will be hard to run your business and make it a success.
A good business plan is one of the most important steps when it comes to becoming a business owner. Your plan should span the first three to five years and account for goals, milestones, expenses and revenue.
There’s demand for your product or service
Before starting a business, you need to research whether you have a viable market. Find out if:
there are customers who will be willing to pay for what you’re offering
there are too many providers already out there who are offering something similar?
Make sure you understand what will make your business stand out from competitors and what kind of people will be interested in it.
You’re in a position to take on financial risk
Starting your own business will inevitably involve investment to get it off the ground. There are many funding options, including using your own savings, asking for help from family and friends or getting a loan from the bank.
However you end up getting together the necessary capital, understand that you may not get it back and that you’ll need enough to fall back on if you don’t. Not only that, but be prepared for it to take time before your business starts making a profit.
You’re aware of the realities of success
This might sound strange, but success isn’t always easy. With success brings added pressure, higher expectations and more work.
You may want to start your own business as a side job to earn some extra money. But if it grows to be extremely successful, would you be ready to make decisions on how to continue? You might have to start managing employees or take on additional legal responsibility (such as VAT returns, for example).
You’re ready to work hard and do whatever it takes
Starting your own business may not be as glamorous as you imagine. There will be lots of nitty-gritty jobs that you’ll be responsible for when you’re first starting out and can’t afford the help from employees.
Many people also overlook the amount of form-filling, paperwork and registrations that is often required, such as keeping records of your expenses, registering for self-assessment and completing your tax return.
You have the time it takes to run your own business
If you want to start your own business because the hours at your current job are too long, you may be in for a shock. While you do have flexibility as your own boss, you’ll also need to put in significant amounts of time as you get things established.
It will most likely affect your personal life and the time you have to spend with friends and family. That said, the exhilaration of freedom and the potential for great reward often drives entrepreneurs to work as hard as necessary to grow their enterprise.
You’ve always wanted to be your own boss
To start your own business, you need to want to be your own boss. This means you have to be willing to hold yourself accountable, make tough decisions and fully accept the outcomes.
Unlike when you work for an employer, there’s no-one else to take the reins when something happens that needs reacting to. It can be a daunting prospect, but if you prefer to be in the driving seat it’s a good sign that you may be well-suited to running your own business.
You know when to ask for help
Although you may be planning to run this business by yourself, it doesn’t mean that you shouldn’t enlist help from professionals.
By seeking guidance from experts – such as legal advice from solicitors or tax and accounting advice from accountants – you’ll be able to make sure that your new business has been set up correctly.
It could also take a lot of stress out of doing things you’re unfamiliar with so that you can just focus on achieving your goals for your business.
Access support to start your business
Visit the StartUp UK hub for resources that give you the education and inspiration to get started on your entrepreneurial journey.